Posted on: 09th Jun, 2010 03:23 pm
I have a house that has been on the market for 4years. I filed a bankruptcy ch13 in 2007 because of a divorce. I have moved from the state were the house is for 2 years now.But Im current on the note. I want to know is it a good idea to do a deed in Leiu or just do a foreclosure
hi charles,
if you do not wish to keep the property, then it would be a better option to go for a deed in lieu of foreclosure. you won't be liable for the delinquent amount resulting from the sale of the property. however, you should remember that your lender will accept a deed in lieu of foreclosure only when you are delinquent on your mortgage payments for few months. also, it will have a negative affect on your credit score. your scores would go down by 250 points.
if you do not wish to keep the property, then it would be a better option to go for a deed in lieu of foreclosure. you won't be liable for the delinquent amount resulting from the sale of the property. however, you should remember that your lender will accept a deed in lieu of foreclosure only when you are delinquent on your mortgage payments for few months. also, it will have a negative affect on your credit score. your scores would go down by 250 points.